Good day, and thank you for standing by. Welcome to the NKT Q2 Report 2021. Now, without any further delay, I'd like to hand the conference over to your speaker today, Mr. Alexander Kara. Please go ahead.
Thank you. Yeah, good morning, everybody. Thank you that you take the time to listen to our Q2 results of NKT and NKT Photonics. I have here in the room with me, Line Fandrup, my CFO, and Basil Garabet, the President and CEO of NKT Photonics, which we will hear later. If we come to the Q2 numbers, we have pre-announced Q2 result on the 16th of July, you will not hear too many or no surprises. We have disclosed already EBITDA revenue for NKT and Photonics, we have updated our guidance. As such, no surprises to expect in this call. Overall, key message for Q2 is we had a good organic growth, a satisfactory quarter overall for both NKT and NKT Photonics, 20% organic growth in cables. All the three business lines contributed to the revenue growth and also to the earnings.
This is the highest EBITDA result since 2017. We have some order wins, Troll West and AC cable with Equinor and SSE as customer, and Dogger Bank C, a DC offshore wind farm in U.K., which completes then the Dogger Bank cable order where we had already received Dogger Bank A and B. In Photonics, we had the highest-ever Q2 revenues of 28% organic growth, which was mainly driven by the infrastructure segment, which is also great. The board of director has decided to resume the strategic review of NKT Photonics. If you look at now the performance, as I said, a satisfactory quarter, the best since 2017, 21% growth. You can see that here also on the chart. In solutions, we had a good utilization in the factory with different kind of orders, which we produced different cable types.
Two awards, as I mentioned already, which bring us back to a record high order backlog of EUR 3.16 billion in market price. Which is, of course, great as it increase our visibility and planning capabilities for the way forward. Also, in application, we continue to improve on the financial performance. We have increased revenues and also the earnings efficiency, and I come a little bit later back. Service and accessories achieved the highest-ever quarter. We had an exceptionally good quarter, particularly in service with repairs. This, of course, contributed strongly to the result of Q2. If we go with solutions, here, as I said already, we had different type of cables produced in Karlskrona and Cologne. DC, like Dogger Bank A, AC offshore, like East Anglia, Troll West for oil and gas with Equinor, and Viking Link.
A good mix of cable production in solutions, and as such, a good utilization in the factories. What is also highlight the completion of the NordLink interconnector from Norway to Germany. This is also personally for me a great achievement as I was in 2014 personally involved in this tender under ABB, and finally, this project is now in service. 2014, 2015, award, quite a long time which it takes actually to install such large order, but a great achievement and good to see that. The NKT Victoria was busy in Q2 with several installations. Also first half was a good utilization. What we are looking now in what we have started already in application and accessories, looking on structure optimization of the business. We have initiated the process for solution, how to optimize the solution business from the cost structure, the portfolio.
This we have also pre-announced, with up to EUR 40 million cost, which is a mixture of CapEx and other costs. Looking at the high voltage market overall, I think what is good, there is around EUR 2 billion which have been awarded in the first half, which is good for the industry, and which helps the industry to increase the utilization, which is great for all. As I said, we have been successful with Troll West in Norway, AC offshore cable with dynamic sections and the Dogger Bank C, which completes the total Dogger Bank order. We are busy with, and continue with, tenders in a different market segment. The majority of the orders which have been awarded in the first half have been DC and some AC.
You see on the right side Dogger Bank C and Troll West, which have been added to our backlog. Going to now to the backlog. With these two orders, we return back to a record high backlog of EUR 3.16 billion in market price, which gives us good visibility and planning capabilities for the future. We are now back on this high record level with Dogger Bank C and Troll West. Looking at application. Application, we have increased revenues to EUR 124 million, up 6%, also the earnings have improved to EUR 7.6 million. We see here results of our actions, improvement actions, what we have taken, we expect that this trend continues. We have also progressing on the moving building wires from Asnæs in Denmark to Poland to have a focus factory concept. This relocation is ongoing but it will take some time, obvious.
Also on the medium voltage side, we had some good momentum in the market in the Nordics. Whereas other markets get a little bit weaker. Good traction in applications, and more to come in the coming quarters. Service and accessories was a really good quarter, I would say, with EUR 65 million on revenues compared to EUR 36 the same quarter last year. 90% growth, mainly driven from service with several repairs, offshore repairs, but also good traction on accessories with medium voltage accessories from Nordenham in Germany. We have worked on optimization on the business. As we have announced a bit earlier, we concentrate the high voltage accessories business in Alingsås in Sweden and move those production capacity, concentrate it in Alingsås and move it from Cologne to Alingsås. EUR 14.5 million EBITDA, quite nice achievement for one quarter.
Unfortunately, this is not to be expected to continue, as it was also driven by repair orders. With this, I think you have the highlights of the cable business, and I would now hand over to Basil, who will give you more details on Photonics.
Good morning, thank you, Alex. What a great quarter for cables. It's getting harder and harder to catch up. Let's start with Photonics. We had a great quarter. It's a great satisfactory quarter. We had the highest revenue for Q2 in Photonics. The revenue improved, as well as EBITDA, and it's compared to last year, which was obviously impacted by the COVID-19 pandemic. Our organic growth was 28%, which was driven by a very good growth in industrial. Medical and life sciences had a modest growth, and aerospace and defense had a modest growth year to date, but the actual quarter was up 30%. We're seeing some fluctuation in organic growth in the defense side, but if you take it over a year, it's relatively steady, and we're very pleased with the way it's performing. Obviously, due to the higher revenue, our EBITDA increased.
Earnings, including redundancy costs, were at zero EBITDA because we had something like EUR 0.4 million of redundancy costs. The other good thing that is happening in the quarter, which is very pleasing to us, is that our order intake was also at a record high. It's at 41%, which is an all-time high for Q2. Again, very pleased. We've been working very hard with our customer and our customer base to improve the business going forward, and it's good to see it come home. Finally, in July 16th to be exact, the board of directors decided to resume the review of strategic alternatives for NKT Photonics. Go to the next page. In the business development, the medical and life sciences, which is driven mainly by our microscopy and our ophthalmology business, is doing well.
We're getting more traction in the ophthalmology field, and we expect actually that to grow, and it's one of the focus areas for the company. We have ideal products that fit in there. We're also benefiting from the release of a number of different products that we did last year. In the industrial segment, which is our biggest segment, also is the fastest-growing this year, the main contributors were the semiconductor industry. We supply a number of lasers that go into major tools in the manufacturing area of semiconductor. That's doing relatively well. What's also the other area that's doing very well in our industrial area is the quantum. Anything from quantum research to quantum computing, et cetera, there's a big pool of our customers in that.
In power cable monitoring and distributed acoustic sensing is also doing well. We are in sort of a record high order intake in that side. Finally, in aerospace and defense, which is the smallest activity we have, but growing, the project level activity is very high. Again, something that is nice to see. We see that growing also in the U.S. going forward. With that, I will hand it over to Line. Thank you.
Thank you very much, Basil. After the go-through of the business, there's the go-through of the financials. If we just have a look here at the income statement highlights, I think dwelling on the organic growth and the change this quarter for both companies. NKT Cables is coming out of a solid growth even in 2020, and now further to that, 21% it's growth on the Q2. There's a lot of things underneath this going on, as Alex also alluded to. For Photonics on the growth, also to see that the 2020 path has changed, and now we're looking into a very solid growth. Overall, very satisfactory for the company as a whole.
This also boils into some earnings that are strong in the quarter, EUR 42 million on the total for the company on operational EBITDA, and this constitute of the cable part with the EUR 42 million, which is a EUR 26 million increase compared to last year in the same quarter. Also Photonics coming into a break-even. If you just dwell a little bit about the, let's say, the seasonal pattern of Photonics, we now have ahead of us a second half, which is usually the high end of the Photonics earnings level. On the margin level, this of course, also pans out into good results. This is really great to see. The net result for the company is positive, and comparing to last year at the same times, we are up by a bit.
If you just have a look on the FTE side also, you see here that the corridors expansions in the solutions part is adding some to the growth in NKT Cables and FTEs, but also the underlying changes in the factory footprints in applications and in accessories is also impacting here, where you see a change for the coming periods also. In NKT Photonics, you see the opposite of the restructuring that Basil alluded to, taking the FTE numbers down a little bit. We had no one-off items in Q2. In Q1 we had the stimuli, that's also, of course, a part of the good earnings level of the Q2 that we didn't have anyone else. If we go into the balance sheet highlights. Here you note that the working capital changed significantly from the first quarter of 2021. I'll come back to that.
I can say here that it's primarily coming from the solution and applications business. In Photonics on the working capital, that's actually an improvement due to a more effective collection of trade receivables. Going down to the rows here, you see the company as a whole turning into positive. This is, of course, very much impacted by the improved profitability in the Cables division. You see the Net Interest-Bearing Debt impacted, of course, by the working capital changes for the quarter, but coming significantly down compared to last year at the same time, of course, due to the capital raised in 2020. Our leverage level, NIBD to operational EBITDA, is at 1.7x EBITDA for the quarter. With an expectations that what we will see in the working capital expected improvements, that it will come down again.
If we go to the next slide, on the working capital. From the Q1 of the -EUR 65 million to a Q2 of EUR 113 million, this is due primarily to solutions and applications here. As you know, and we talked about earlier, the solutions business is very much prepayments and milestones in general. It is so that this quarter, we actually have a phasing of the milestones that impacts us unfavorable on the solutions business. This combined with the hedging instruments that we run as a business here, drove up the working capital quite significantly. Overall, the commodity prices is, of course, also impacting NKT, and you can say when the metal prices go up, our receivables increase corresponding more or less, and the payables also decrease, more or less have a neutral effect against that.
You see, of course, also inventories, raw materials, anything we have as stock, also taking some of that metal pricing. Important to say here also that we are working on, let's say, the internal elements of inventories and accounts receivable, and the milestone payments, and where some of these effects are more or less also related to the seasonality of summer buildup on inventories and the hedges. This will be coming down in the quarters to come. Having a look at the cash flow statement and the free cash flow for the period. Working capital, the change here, of course, not favorably impacting the free cash flow. More to say that the EBITDA, of course, positively contributing to the level, whereas our continuous investment in the expansions in Cologne and Karlskrona is also taking down our free cash flow.
We are on good track on the expansion program, and you will see over the second half also that the investment level continues to be impacted by these investments. Coming to the next slide on the outlook for the year. As we came out on 16th of July with a specification to the guidance, there's no change to this now. We expect NKT Cables coming out in the upper end of our revenue guidance of EUR 1.1 billion-EUR 1.2 billion, and similar in the operational EBITDA, between EUR 80 million-EUR 110 million, where we'll be in the upper end. NKT Photonics changed the outlook for the year on 16th of July, based on the good performance seen. Now we are looking into an 8%-15% organic growth on the revenue, and an EBITDA margin of 6%-8%. Just to recap, the key messages of Q2 here.
A strong organic growth in NKT Cables across all business line, contributing positively and getting the operational EBITDA to the highest level since 2017. Our backlog returned to a record level of EUR 3.16 billion in market prices, based on also the awards from Troll and Dogger Bank C. Photonics having the highest ever Q2 revenue with 28% organic growth compared to last year. Finally, that the board of directors have decided to resume the strategic review of NKT Photonics for the time ahead. With that, I'll pass over to the question session.
Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel that request, please press the hash key. Once again, it's star and one on your telephone if you wish to ask a question. We already have a few questions in the line. Your first question today comes from the line of Kristian Johansen of Danske Bank. Please ask your question.
Yes. Thank you. I've got three questions. The first one goes to the mix in solutions. As your guidance implies a lower earnings, and you have talked to this worsening of mix going into the second half, I understand it's sort of expected sequentially to worsen in Q3 and worsen further in Q4. Firstly, whether that is correctly understood, and secondly, when do you expect then this mix to improve again?
Okay. Kristian, as I said, we had in Q2, a good mix on different cable types, and this is changed a little bit in the second half, a little bit unfavorable. We just won the Troll West as an AC order. Ideally we want to have an optimal mix in the factory, which would ensure a maximal, let's call it best utilization of the solutions factory. It depends very much on the orders wins, and then of course, also the second half is somewhat weaker because we have a record high Q2 in the service and accessories business, as you wrote also this morning in your report. This will somewhat weaken the second half of the year.
I understand. If we look at just solutions though, I guess that there's probably a limited amount of orders which can really change the second half, given the amount of months left. Looking into the beginning of next year, do you still see opportunities to optimize that mix for first half 2022?
Yeah, absolutely. I want here also to mention, we have won some time back, a major part of the German Corridor projects, which we expect also to start production next year. This, of course, will also contribute, if you want to say, not really a new segment, but quite massive amount of cable, and that will help. We are not yet there. We have not come out for the guidance for next year, this will tell when it's time to do so. Troll West AC order helps. Yes.
Understood. My second question. This investment into the solutions business, where you expect to spend EUR 40 million, I understand you're reviewing this so that the exact actions are probably not in place for you to share right now, can you maybe then elaborate a bit on the motivation? Why have you felt the need to make these changes?
No, the need is very simple. I started the job here in NKT to improve the result of NKT. We have done good progress in the last two years. Also have initiated a lot of actions in application business, where we see some results, and this we expect to continue. We have taken actions on footprint. If you look at 1 kV movement, the building wire movement, accessories, high voltage concentration in Alingsås, then optimization factories and different actions. We have also started on the solution side to look on improvements. Now we look into further improvements. Further improvements also look at the cost structure and what can we improve the business to increase our competitiveness, particularly in the lower profitability segment, to get a broader part of the market, to increase our market share.
This is just a continuation, what has been started already in other business lines. This we will continue on until we are on a level where we say we are satisfied, which will most probably never happen.
Fair enough. When do you expect to have the plan ready to share with us in terms of exact timing and potential earnings upside to these investments?
I think we will, during the second half, come out with some more details.
Understood. My last question is just on these repair jobs. Obviously, it is fairly evident that they were quite profitable for you in the same quarter. Can you just comment on what amount of repair works you have been doing here in Q3 so far?
No. We had several repairs, for example, the BritNed repair, which is on an MI cable, which is quite a complex project. What we call complex project is from U.K. to the Netherlands. We have the Baltic 1, which is an offshore wind farm on 50 Hz. There were several, but just by coincidence concentrated. We had another repair, not a full repair offshore, with TenneT. This contributed to this result. Again, as also you wrote in your article, this is not plannable. As such, we cannot assume that we will have, in the second half of this year, the same pattern. Of course, we work with service agreements with customers, and with those customers where we have service agreement, if a repair happens, then this repair will be awarded to NKT.
Okay, if there will be a repair from external factors, not plannable.
No. I guess my question was more on whether you have initiated any larger repair works here in the third quarter.
Oh, sorry. I misunderstood. No. There's no other large initiative. Not that we are aware of any external cable which has a problem.
Understood. Thank you. That was it for me.
Okay.
Thank you. Your next question today comes from the line of Max Yates of Credit Suisse. Please ask your question.
Thank you. Good morning. My first question is on the solutions margin. You did 14.1% in Q2. It sounds like the factories were well utilized. It was a good mix of projects. I'm just trying to understand, as we look out into 2022 and 2023, is there room to improve margins from this 14% level? Is this an example of when everything goes right, you have good mix, this is the kind of level the business should be achieving? I'm just trying to understand, if you look at this quarter as an example, what additional levers there are that you can pull to move margins higher from that 14% level. Is that a fair reflection? Yeah.
Yeah. In general, to improve further margin, this can happen if we have increased the utilization and have a good mix. As we just announced, also we look at the structure and the cost base of the Solutions business. This should also lead to an improvement of the earnings. This is why we have initiated this process. We also expect that the German Corridor, we will start production next year. We are not yet here on the guidance discussion for 2022 or 2023. We work on it, obvious, to improve further. That's the plan.
Okay. Fantastic. Just my second question would just be thinking about the balance of your backlog when we look across years in 2022 and 2023, and also the types of cables in your backlog, both AC and DC. I just wanted to understand, do you view your backlog as relatively balanced when you look at when your factories will be utilized in 2022 and 2023? Or are there certain technologies which we should be looking out for, where you really need to win some orders to make sure that your utilization is relatively balanced across 2022 and 2023. Just to understand, yeah, the different technologies.
Yeah
that it's balanced.
Sure. We were quite successful overall in the past quarters on order wins on the DC technology, but also on the AC. This quarter, we just announced the Troll West AC triple cable. We have more capacity on the AC side and also on the MI side. For MI, there is no project yet awarded, and that will be difficult for 2022, as it takes also some time. What we have the capacity to take some more orders and also particular on AC and MI in the, let's say which impact AC 2022, MI 2023 rather than 2022. Still more possibility to further optimize the factories if awards are there and if we are successful. A lot of ifs, but of course we have also other areas where we looking on growing the business.
Okay. Do you see that as an issue when you look at the MI project pipeline? Because my understanding is that your margins and solutions in Q4 are weakening because you're finishing the production of Viking Link. Just to understand, as we go into 2022, do you see projects out there in MI that can fill this capacity?
No, there is projects which are out, but there's always a delay from award until you start production. I don't say it is an issue. I just say with additional AC and MI, we could even further optimize it. On the other side, we have also the German Corridor projects, the DC link cable, which we will start next year. That also contributes to the loading and the mix of the factory.
Okay. Just finally on the Photonics process, and I realize you've only just restarted the process, but assuming that you are able to dispose of this, could you maybe talk a little bit about your capital allocation priorities balanced across paying down sort of debt and hybrid bonds, thinking about additional shareholder returns, how you see those for the group?
On Photonics, just to answer your question, no decision is made yet on disposal of anything. It's a strategic review, and we have not concluded on that review. We've just started it, as you mentioned, and it will take however long it takes to conclude, and then we'll announce what the conclusion is and what the results will be.
Line here, just to build on Basil comment in terms of proceeds and the question there, right? Multiple options, as you also mentioned, and none to be decided as of yet. Now we'll do the review and conclude that, and then, of course, look into how to use possible proceeds.
Okay, perfect. Thank you, everyone.
Thank you. Your next question today comes on the line of Akash Gupta of JP Morgan. Please go ahead.
Yes. Hi, good morning, everybody, and thanks for your time. My first question is again on the guidance. I think you had very strong performance in first half, and I get that part of that is driven by these one-offs in service, which may come, may not come in the second half, but still at EUR 110 million, it's EUR 37 million implied for the second half against EUR 73 million in first half. I wanted to understand how much of this is driven by you being conservative because of the previous disappointments that you are not raising the top end of the guidance range now, or to what extent it's driven by the mix in the projects which may not be fully captured in consensus estimates.
Akash, this is Line here. I think fair to say, as we repeat that the utilization of the factories is the number one in terms of the cable business. Execution and good margins to bring up the earnings, right? What we are looking now, the visibility we have, we see that we will come out at a different level. Certainly also that the services is not to be predicted, which kind of repair jobs we have. Then maybe also the note that this business is a project business, and as you know also from the history and our competitors, that can be rather large swings, which will always make us at least considerate about any unexpected events that could come.
Not to say that this is the main part of it, but that will always allow us, or make us be considerate when we do any kind of adjustments to our guidance, what would that mean?
My next one is on Solutions full year revenue. You reported EUR 323 million for the first half, and you are indicating around 10% backlog to be converted into sales in the second half, and 10% of EUR 2.66 billion will give me around EUR 590 million or slightly below EUR 600 million revenues for Solutions. Is that the right math or are these numbers rounded, which may indicate that you may have higher revenue potential in Solutions for the year?
A 10% is a rough number. We said, Akash, that we expect somewhat weaker second half. We will see. We work on it, and there could be also some in and out orders, which helped to improve the numbers. You have always, in the cable business and the large projects, variation orders, which could improve the revenues. These are really short-term revenues improvements on variation orders. This needs to be seen. For the time being, it's unlikely, let's say it like this, that Service will have the same strong second half than the first half. I would not call the Service a one-off. If you want to call one-off, you need to do something to get these orders. It is not just you have a write-off of some numbers. We work on it, and of course, we do everything to improve.
For the time being, what we see it's somewhat weaker.
Then my final one is on market share in both Solutions and Repairs. In Solutions, on my back of envelope calculation, you had roughly 20% market share in first half order awards. When we look at the second half orders, and as we hear from some of your competitors in terms of complexity of the project, like EuroAsia and others, can you say if 20% would be fair assumption for second half orders? Then coming back on market share in Repairs, I think your performance stood out against competition, where basically we haven't seen that strong repair performance in the first half. I wanted to ask, is there anything that you have changed in the organization, which is why you are gaining market share here, and these things should we expect to continue in foreseeable future? Thank you.
Yeah. The market share is obvious. It can vary from quarter or even within a half year, quite substantial, depending on how your success rate is on orders and how is the size of the orders awarded. Last year, we had a very high orders intake, which increased our market share beyond the 20%. Of course, we are now with EUR 3.16 billion market share backlog is a very high level. Akash, of course, our investment is aligned that we cover backlog and the future orders intake. We need to see how that matches our capacity. We need to see also how much can we take in, and as we need to also deliver. About the market share in the second half, this is very much dependent on the order win what comes, and that can also vary quite a lot.
Will the large interconnectors be awarded? To whom? Will smaller be awarded? In average, of course, we plan to keep over the period our market share, LTM spoken. Repair, we have not done specific actions on the organization. We focus on ready preparedness orders to get more in, which increases the likelihood of getting repairs if it happens with those customer and these specific projects. What I have of course done already early when I joined NKT is I splitted intentionally the business line in more in focus business line, Service separately, Accessories separately, Application and so on, in order to have a clear focus here and to get also a certain area solved from the past and also to prepare for the future. I have intentionally increased the span of control in the organization, and that is maybe the combination of certain actions.
We see some results, but definitely the Repair is also somewhat just statistically not predictable and to a certain extent, it just happened in Q2.
Thank you.
Thank you. We do have one more question, but in the meantime, as a gentle reminder, ladies and gentlemen, if you wish to ask a question, please press star one on your telephone. Your next question today comes on the line of Claus Almer of Nordea. Please ask your question.
Thank you. Yeah, I have also a few questions. The first question goes to the pipeline. Alex, I think you gave some soft comments about awards. When do you expect the next larger project awards coming to the market? That would be the first one.
That is difficult to answer. We see here potentially some delays in the CfD in U.K., which might slip into what we expected originally end of this year and then beginning of next year. It could even move further out. These large projects and their awards, they have their own dynamic, which is actually not in our control. It really depends of the customer and even on the authorities and permits and financing, and you name it. There are several aspects of the super large interconnectors in particular. I cannot tell you here when a NeuConnect or EuroAsia, for example, or others will be awarded. That would be a pure speculation. We need to see. As you know, on some projects, you work for potentially years. Some takes and slipped out and moved on.
This is a little bit the nature of these large infrastructure projects.
Sure. I know we have learned the hard way in the past that projects are very difficult to predict the exact timing of. Do you expect more projects to be awarded this year?
Yeah.
Sorry. Okay, good.
Yes.
Yeah. Okay, good. The second question goes to the guidance. I guess at least that the service division has exceeded your own expectations. Is that a fair assumption?
Exceeded own expectation. My team needs to do a lot to exceed my expectation, huh? Let's say they definitely have an outstanding quarter. Absolute. Also performed well on executing these repair jobs. Yeah, I would say.
Alex, it was more compared to the guidance when you started the year and what you included for the service division. I would assume at least that the service division has done better.
Yeah. You are right.
This was maybe a slightly nasty question, because if something goes better and you are reiterating the guidance for the cable division, something else must have underperformed to maintain your guidance. Is that the way we should look at it, or is it like Line said, let's see, this is a project business and there might always be some swings in the performance.
No, it's not that the other business has less performed. I would not call it like this. We have now just also specified the guidance to the upper end. Before we said 80-110, now we say upper end, which means closer to the 110. I think our consensus is at 112. This is where we are. We have changed, specified the guidance. I would not say that other businesses is performing less. Let's see, and we work on the second half and work on hopefully that we can present good results.
We hope so. Yeah, thanks. Just my final question, which goes to Basil. In the report it was mentioned these possible component shortage, and you're doing something to mitigate a possible situation. What are you actually doing, and what's the risk for component shortage in the second half this year?
Hi, Claus. Yeah. Obviously, there is a risk, and it's we are mitigating on several fronts. We are buying ahead of time on a number of components that are very specific in our production, very specific in the possibilities of shortages. In general, we see most of our suppliers having delays. The delays are not in months, they're more in weeks. We are mitigating against that as well. It's hard to see because it's a dynamic situation at the moment, and we are also qualifying other suppliers to the strategic components that we might have shortages on. So far, the delays have only, like I said, been in a number of weeks rather than months or quarters.
Okay. That's good to hear. I am a little bit unsure about this strategic review timing. Did you say anything about when could we hope or expect even an outcome of your work?
Well, Claus, you know, it just started. We announced it on the 16th, which is a month ago, and it's through the holidays. The process is just starting, and we'll announce it in due time.
No guidance whether this will be this year or next year?
That's all part of the review, is to look at the options and what we're going to do with the assets.
Sure. Okay. By the way, great quarter, so thank you so much.
Thank you.
Thank you. It appears there are no further questions at this time. Please continue.
Okay, I think if there are no further questions, thank you for your good question and that you took the time to listen to Q2 results, and hope you have a good day, and hope that we talk again when we have the Q3 numbers ready. Of course, hopefully with good numbers. Thank you very much. Have a good day. Bye-bye.
That does conclude our conference call today. Thank you all for participating. You may now disconnect.